Impact of Privatisation on Management Issues : Empirical Evidences from Ethiopia

This paper examines the impact of privatisation on the productivity, profitability and the major management issues of the privatised enterprises in Ethiopia. Data ranging between 1990 and 2004 were collected from forty five enterprises in order to examine the performance of the privatised enterprises. As for managerial issues, Survey method was conducted in April-May, 2004 for which purposive random sampling was applied. The study reveals that the net profitability of the privatised enterprises surged despite the production and sale decreased. The analyses over the management issues exhibit that there were tremendous changes and developments in the privatised enterprises in which the foreign privatised enterprises were found relatively better-doers as compared to the domestic privatised enterprises